In the News

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By: Ellena Kleinman

June 15, 2011

Peterson Partners Identifies First Deal for New Fund; Could Exit a Number of Current Holdings, Partner Says

Peterson Partners, a Salt Lake City, Utah-based private equity firm, expects to close the first acquisition for its new USD 50m fund late this month or early next month, managing partner, Dan Peterson said.

The company it plans to acquire is Maryland-based, he said.

The firm is also in the process of getting to liquidity events for a number of its portfolio companies within the next year and a half, added Peterson, declining to identify which companies are ready for exit.

With regard to acquisition opportunities for current portfolio companies, Peterson said Salt Lake City, Utah-based rubber linings maker Rocky Mountain Rubber has considered making buys for defensive and offensive reasons.  Peterson acquired the business in early 2010.

Asked which of the firm’s portfolio companies are performing well, he pointed out Azul, a Bazil-based airline, as one that is growing rapidly, although he declined to comment on its exit strategy.  Peterson is a small co-investor in Azul, he noted.  This news service reported in April that Azul has mandated Goldman Sachs, Itau BBA, Morgan Stanley and Santander for an IPO in the third quarter of this year.  TPG, Weston Presidio, Cia. Bonzano Simonsen and Gavea Investimentos are also investors.

The fund, which closed earlier this month, looks to invest or co-invest in companies with revenue between USD 10m and USD 50m, Peterson said.  The firm aids to limit the leverage on its holdings at 2x EBITA, he said.

Peterson holds more than 20 current investments in various sectors, according to its website, including Provo, Utah-based home security provider Vivint.  Vivint CEO Todd Pederson told this news service in April the company is growing rapidly and is likely to raise at least one round of capital before exiting in two to three years.